Trader says ETH bears are doing ‘wrong’ despite ETH/BTC 6-week slide.

Ether – the second largest cryptocurrency by market capitalization – has fallen 18% against Bitcoin in the past six weeks, but traders are warning against writing off the asset known as the “world computer”.

“It's a mistake to lose on Ethereum right now,” crypto trader Merligin said to his 378,200 followers in a January 16 post.

The movement of the ether is ‘undeniable'

“The momentum is undeniable, and the next step is coming,” Merlijin said.

At the time of publication, the ETH/BTC ratio – which shows the relative strength of Ether (ETH) to Bitcoin (BTC) – is 0.0332 according to TradingView data. The ratio has fallen 17.5% since December 5, when Bitcoin touched $100,000 for the first time in history.

During the last bull market cycle, the ETH/BTC ratio fell by 0.03 in March 2021, before rising to 0.077 two months later. At the same time, the price of Ether increased by 110%, reaching $3,817.

Ether may benefit from wider adoption than Bitcoin.

Others say that while many are looking at what US-elect Donald Trump can do with Bitcoin after his inauguration, Ether could see second-hand benefits from Bitcoin's wider adoption.

Apollo co-founder Thomas Fahr wrote in a Jan. 16 X post that if the strategic bitcoin reserve is withdrawn after Trump takes office, bitcoin could push it to $1 million this cycle. He added that $4,000 “in the game” would be ridiculous for Ethereum.

Ether briefly tested the $4,000 level in December, a critical support level before retesting the all-time high of $4,878 from November 2021.

However, it failed to hold and subsequently fell below another key support at $3,500, now trading at $3,365.

Meanwhile, Bitcoin has bounced back above $100,000, trading at $100,947 after breaking above and below the level several times since its peak in early December.

Related: ETH data looks promising, but Ethereum price recovery will take time

Some analysts are concerned that Ethereum integration is not playing out as market participants think.

In a January 16 post on X, financial analyst Rajat Soni said that after the September 2022 merger, Ethereum “should have been deflationary.” However, Sony said the supply was “almost restored” before the merger took place.

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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.